The Naked King

Brian was a proud leader.  He’d driven his organization forward with growth and innovation and developed a team of high performing individuals.  Yet as Brian exuberantly pushed toward greater investor returns and new opportunities, he simultaneously generated friction among his team.  Unbeknownst to Brian, the team felt restrained, held back, and at times disengaged.  Why didn’t Brian know?  Brian, was a naked King.

As in Hans Christian Andersen’s tale the Emperor’s New Clothes, Brian like many of today’s leaders, shares a common circumstance as the King and his minions in the well-known fable.  Employees, even at the executive level, are like the townspeople, withholding information and feedback.  Why does this happen?  

Leaders, like the rest of us, seek out positive and encouraging feedback, and resist negative or contradictory information.  Similarly, a leader’s style in managing difficult situations is likely to mirror the rest of society and venture toward conflict avoidance (seen as negating or ignoring an issue), or confrontation (seen as bullying or intimidating behaviors).  Further complicating the situation, the power and influence of a leader combined with these common character traits, become more pronounced and more challenging for others to overcome.  

But does our leader know s/he is naked?  Some, no doubt are aware.  These leaders hope to keep others in the dark.  They tend to be secretive and closed off, and their organizations are likely to have heavy turnover.  But most leaders, like Brian, are at best mildly aware.  They are friendly and open, get along well with others, and make an effort toward being available.  They take their ability to be engaging, friendly, and socialize with their staff as evidence that their leadership is strong and healthy.  The problem however, is that they do not invite feedback and criticism.  If it’s hard to give feedback to a friend, what happens when s/he is also your boss?  Forget about it.

So what can the naked King do?

Given that the risks are too high for clear feedback to come through internal efforts, Leaders who want to know what their team is thinking will need to consider getting outside help.  Through quasi-360° evaluations conducted by a consultant or coach, a leader can learn of the concerns which exist in the organization, and of his/her leadership style, while minimizing fear and resistance among the staff or executives who are providing the feedback.  But that’s only step 1.  Step 2 is to utilize that feedback and prove to your team that it was worth their effort, and risk, to provide it.  This will most likely entail executive coaching, as well as a degree of transparency regarding your knowledge or acceptance of the feedback and your efforts to remedy the situation.  Steps 3 through infinity will be to keep that conversation going.  Encouraging others to give feedback in real time – not after the King has walked naked through the town.

Raising the Bar: How to Ask for a Raise and Increase Your Chances of Getting It

We all hope that when the time comes, our managers will do the “right thing” and give us a raise (without our needing to ask for it).  In reality, however, this is often wishful thinking.  As such we need to proactively protect ourselves and take remuneration negotiations into our own hands.  While the conversation may still be difficult, below are ten steps to making it more palatable and productive: for both you and your manager.

Part 1: Before the conversation:

Tailor your approach - depending on how long you have worked with your manager, you should know his/her interests, needs and goals.  If you don’t, try talking to a trusted colleague who knows your manager better and get an understanding of what is likely to get the best response. Pitching your raise request in accordance with your manager’s needs increases the chances of a successful outcome.

Choose the right time – Contrary to popular belief, there is a good time to ask for more money. Most people wait to have the remuneration discussion at review time, when managers are typically: inundated with similar requests, restricted by end of year budgetary constraints, and focused on your “problem areas” in need of professional development.  Instead, initiate the conversation hot-on-the-heels of a clear and undeniable professional success (e.g. completing a project or exceeding a target). Choosing the appropriate time, gives your request legitimacy.

Make a list - Asking for a raise is about doing MORE than what is asked of you, it is about doing something EXTRA. Therefore, you should go to the meeting armed with a list of the ways in which you have personally added value and made a difference to the organization.  Include absolutely everything that you can think of and then prioritize them in order of weight to support your request.

Get the facts and figures – Gather evidence that supports your list of personal value-adds. Compile the results of the projects completed or measures you have implemented, emails evidencing praise from others in the organization, customer testimonials – whatever you need to demonstrate your value and contribution. Be informed on the salaries of comparable roles both in your organization and industry-wide.  This will assist you in tying the figure you request to a verifiable norm as opposed to a pie-in-the-sky figure.  Websites such as PayScale and GlassDoor may be helpful in establishing these market norms.

Practice makes perfect – Once you have done all of the background work, it’s time to practice! Try “playing it out” with a trusted friend or partner. If this doesn’t feel comfortable, you can record it on your phone or do it in front of the mirror. It is important to become comfortable with the words coming out of your mouth. Try to think about what your manager might say and practice responding to his/her hypothetical comments. Practice will make the actual conversation much more fluid, as the substance will flow more quickly in the face of anxiety.

Part 2: During the conversation

Resist your instincts (avoid complaints and ultimatums) – When you sense push back from your manager, you may be tempted to respond with threats of resignation, illicit knowledge of your colleagues’ pay and/or complaints regarding your (heavy) workload.  Avoid these impulses as they create an adversarial environment in which your manager will be defensive and far less likely to grant your request.  To avoid this, continue to build credibility in the conversation by tying your request back to the data you obtained and your list of value-adds. 

Stay calm and collaborate – Asking for a raise can be a highly emotional experience as remuneration is closely linked with your sense of self worth and self-esteem.  To prevent emotions from taking over, try to imagine that you and your manager are on the same team.  Try to come up with some mutually beneficial solutions with your manager and be responsive to any needs/issues that s/he raises. The deal you strike should be flexible and fluid, walking in with a list of demands is not helpful.

Pitch the raise as step towards creating a future – A raise is likely to result in renewed commitment to both your manager and the organization. Remind your manager of this fact. Use the conversation as a segue into your hopes and dreams for the future (specifically those that will benefit the organization and your manager) and create an action plan in which you are both invested.  

Preserve the relationship and be inquisitive - The point of having this conversation is to set yourself up for the future, not to take a step backwards. Accordingly, every move that you make in the negotiation should continue to build your credibility (even if your request is not granted). If you are rejected, ask your manager to spend some time explaining why and to expressly set out what is required of you in order to be eligible for the raise at a later time. Consider whether there is something that you need from your manager to be in a position where you are outperforming in your role (for example, a greater budget or additional staff).

Part 3: After the conversation

Be creative and have a back up plan - If your request is declined, make sure you have back up plan. In lieu of a raise, consider a package of options that are of low cost to the organization but high value to you.  For example, extra vacation time, stock options or more a flexible working arrangement. You may be able to “repackage” your request in terms of these alternate options.

By following these simple steps, you should be in a much better position to ask for that raise or to renegotiate the terms of your employment.  If, after going through the preparation, you don’t feel like you have a strong enough case, keep your notes and plan to revisit the issue when circumstances have changed. 

D.I.Y. – A Plan for Culture Change

What’s your company’s culture?  I’m not asking what you want it to be, or what you tell your customers or clients.  I mean what are the day to day behaviors that are encouraged, rewarded and repeated by members of your team?  Is success based in camaraderie or cut-throat attitudes?  Do your foster teamwork or territorial behaviors?  An organization’s culture is not about what you say, but what you do.

As we start the New Year, this may be the perfect time to begin looking at making change, building upon what works, eliminating what doesn’t, and creating the culture your organization needs to succeed.  This isn’t about making a statement or creating a Phantom Culture.  This is about making deep, meaningful change.  Identifying and developing the culture that you want requires vision, planning, and commitment.

Vision – Know what you want the culture to be.  You may not be able to define the specifics, but you know that behaviors, attitudes, or teamwork will be different.  Have a vision, for how work will flow, people will function, and how business will be conducted.  As you determine your ideal, you can begin identifying what does, and does not, currently support that ideal.  Find your dream-team – those who are dedicated to creating that ideal.  They are needed to move any vision forward.

Planning – The vision is your end-game.  Planning is where you begin the work to get there.  Assemble your dream team and support them with time, space, and any other necessary tools to begin working toward that goal.  This team will need to work collaboratively to identify the specific qualities, in terms of behavior and performance, which will support the vision.  They will more fully imagine the vision, while refining the needs that the vision identified, and breaking them down into action steps.

Commitment – Having the vision, and carry-through of developing a plan will not change your culture unless you are committed to implementing it in every way possible.  Creating a culture and standing behind it means addressing those behavioral and performance standards during routine feedback, annual performance reviews, and everything in between.  It means holding every employee, at every level of the organization, accountable to that same standard, and it means making hard decisions when someone doesn’t “fit” your culture. 

Creating a new company culture is not simple or easy, but it yields impressive results.  When you identify and support your top performers, loyalty and productivity rise.  When you eliminate those on your staff who don’t demonstrate competency or accountability, you remove errors and stagnation.  A new culture allows you to promote the skills your organization needs to be its best, while removing the human hurdles that limit success.  The result - You create a dynamic team that can accomplish great things.  And who doesn’t want, and need, that? 

Occupy# - An Opportunity for Business

The Occupy# movement which is growing throughout our cities has implications that stretch beyond the obvious. This movement is not just about the unemployed and underemployed, but

about the concerns all Americans are having about the future of our country. It isn’t just about Wall Street and big-government decision making, but stretches to concerns about Main Street and organizational leadership.
Through these stressful times business owners and leaders are gaining the unique opportunity to stand out from that cynicism and negativity, and to come forward as a company that cares.

What Steps Can Business Leaders Take?

Executive compensation – I read a recent report from the Economic Policy Institute that said in 1965 the average CEO was paid 24x what the average employee received. In recent years that number has been as high as 300x that amount. This disparity is unacceptable to many.
While some would argue that talent retention requires competitive income, I would suggest that retention comes instead from a person’s respect for a company’s core qualities including its values, the products or services it provides, and its customer’s or clients. Financial compensation only becomes of primary importance when one or more of those core qualities are missing.
Rather than keeping up with the Jones’ in CEO compensation, reconsider what would be an acceptable income and make that change. As an added boost to your image, make the change public. Rather than hiding this scaling back, challenge other organizations to follow your lead.
If this idea strikes a cord with you, and you think that in a competitive marketplace that it is not possible, look for an up-coming article I am writing which elaborates on the subject.

Political contributions – Let’s face it, Google has made research nearly effortless. So while you may be focusing your online attention to SEO and social networking, some may be Googling you for different reasons. If you are making notable contributions to either party, or to lobbyist or other groups, be aware of the potential message this sends out. Your affiliations, once known, affect the perception of both your employees and your customers. What can you do? If you donate money or resources, consider doing it as a personal rather than a business contribution. Where possible, be open to addressing any controversy by putting the topic on the table for discussion and explain your point of view. Most importantly, be aware of the impact this may have on your image and act accordingly.

Flexibility and Understanding – Those same financial pressures are affecting both your employees bottom-line and that of your business. Sure you can’t give bonuses this year. But you can find creative ways to show you appreciate your staff and care about them. In lieu of bonuses perhaps allow an extra day off, a more flexible work schedule (holiday or year-round), even encourage them to organize an in-house secret-Santa to celebrate the holidays. These small efforts will pay long dividends as your team of employee’s feels you understand and care about them.

Creating a workforce that is happy, cohesive, and dedicated to the success of your business is the goal of any leader. Demonstrating you care about them and their concerns is just one important step. If your team is not exactly where you’d like them to be, we’d like to help you get there.

Don’t Stall Out on the Business Highway

In mid-June I heard a report on the radio regarding the American Automobile Association (AAA). They stated that the number of roadside calls AAA is getting, due to vehicles running out of gas while on the road, has more than doubled from this time last year. The not-so-surprising explanation? Skyrocketing fuel prices.

I’ve noticed the same thing in the business world. As the impact of the economy and our undetermined political future causes concern, I’m seeing the movers, shakers and decision makers becoming still or indecisive in their business practices. In times of economic strain and an uncertain future, fear seems to have a paralyzing effect. Rather than spending the money that must be spent, be it on fuel for our car, or services for our business, some people are hunkering down and doing nothing…hoping that somehow this storm will pass them by.

Unfortunately that strategy doesn’t work. It leaves those people stranded on the side of the road while others, who accept the reality, move forward. Jack Hinsche, Managing Partner of the accounting firm Windes & McClaughry explains, “Peoples’ perception of this economic ‘recession’ has lead to cost control and managing of the bottom-line.” However, these cost-cutting decisions are not always logical. Hinsche notes that his firm is feeling the effect. “Collections and follow-up have become necessary. A typically prompt payment is being stretched to 90 days and more.” Hinsche continues, “People are pushing to the inevitable.”

Kenneth Keller, President of Renaissance Executive Forums, sees a better choice: Make the decision to spend money even when times are tough. Keller consults and trains executives and business owners. He observes “I find the economy to be okay for people who know how to use it as an opportunity.” At his company, “We are choosing to grow, not shrink. I have made the decision not to participate in any economic slowdown.” Both Hinsche and Keller recognize marketing as a key part of their plan to keep business moving. Hinsche comments on the necessity of “investing in core values.” Beyond marketing, his firm is committed to keeping with its “people first” culture. This means budget cuts have not been made in the areas of training, coaching or professional development. This is a particularly noteworthy choice; when you recognize that people are essential to a business just as fuel is essential to a vehicle…without them you’ll have no movement.

Safety in the Workplace

In turbulent times, a first step in managing your staff and your business is to create a safety net. Employees are under just as much stress and strain as their bosses, but often with far less to fall back on when times are tough. This is not the time to evoke panic. Keller notes, “For those that rely on others to generate an income (employees of a company), it is a scary time.”

Cutting out ancillary services is appropriate when it’s necessary to stave off reductions in the workforce, but when done simply to maintain the same profit margin, consider the message it sends to staff. If you are transparent with this decision making, you’re effectively telling your staff that they matter less than the level of profit for the business. This is a risky maneuver at best. If you do not tell them, the situation is liable to be even worse. Staff may assume this is a “last resort” and concern themselves with the possibility of layoffs or cutbacks. The snowballing effect as staff becomes concerned with job loss or salary cuts includes a drop in teamwork, lowered morale and reduced productivity; all of which undermine the intended goal of insulating profits and maintaining the status quo.

In building a safety net, it’s essential to communicate with your entire staff about the status of the company during these challenging economic times. Tell them what the impact has been on the bottom line, explain the company’s immediate and long term plans, and make clear the reasons for those plans. Perhaps the company can retain the full workforce without change as long as sales don’t drop beneath a particular threshold. Or, maybe you know which departments are likely to experience layoffs first, and which ones last. In explaining the situation, keep a positive outlook, but be honest and realistic. Keeping your staff informed empowers them to help, and allows them to be a part of the solution.

Profits now vs. Profits later

It is anticipated that during tough times profits will go down, but trying to stave off any decrease of profitability is likely to come with other significant costs. The importance then is having a vision and looking toward the future. Know that how you handle it now, will determine what comes next. Where do you want your company to be when the tough times are past? Trying to play catch up with what you’ve neglected or being poised and ready to move as opportunity strikes? Making the tough decisions, and the right ones at this time, is critical.

In evaluating your business expenses, two questions to explore are:

• What do I need to spend money on?
• How does it benefit me (my organization)?

While many will turn to “discretionary” spending as the first place to make cuts, it may be necessary to re-evaluate what is truly discretionary. Services to grow or maintain the business – via employee development or marketing - may be of greater significance than originally thought. Cutting costs in these areas will most likely cause business to slow further, and staff to feel more at risk.

Making the Cuts

Unfortunately, it’s easy to make cuts when tangible benefits are difficult to measure. Examine company spending patterns and any available metrics or data that offer evidence as to the value of each expense that you are looking to cut. As you perform the cost-benefit analysis, keep your vision broad. Reducing some expenditures will have minimal impact on productivity and morale, while others may have an unknown result or undesired consequence and should be done as a last resort only. “Marketing and employees are typically an area people make the cut first.” warns Hinsche who sees this as a mistake. He recommends instead that businesses “reduce expenses in occupancy costs including travel and administrative expenses.” A flexible work schedule or telecommuting are options to consider that fall within this plan – staff benefit from reduced travel costs, the business from reduced overhead.

In selecting the best plan for your company, be creative. Brainstorm with colleagues, consider several alternatives, and perhaps, if it’s in the budget, consult with a business advisor for an outside perspective of the situation. Remember even short term decisions have a long-term impact.

Outshine the Competition

While it may be tricky determining the right path for your business, consider the rewards. A forward-thinking attitude will lead others to you from the outside. You stand to outshine your competition who sits idly by, and position yourself to grow as you capture their talent and their customers.

Making thoughtful decisions and planned actions in this turbulent time has profound benefits. In accepting and managing the challenges before you and communicating them with your staff, you demonstrate leadership and vision. You stabilize your staff, retain your top talent, strengthen productivity and keep teamwork high.

Yes, the road ahead is rough – but by keeping business and employee services full, like your car’s gas tank, you will get where you need to go.